KUALA LUMPUR: MMC Corp Bhd announced a 29.4% net profit jump for the first quarter ended March 31, 2019 (1QFY19) to RM53.52 million, from RM41.35 million in the same quarter a year ago, thanks to higher contributions from its port entities.

This was partially offset by lower contribution from the Klang Valley Mass Rapit Transit (KVMRT) Sungai Buloh-Serdang-Putrajaya (SSP) line underground works, following a contract revision in November 2018.

Its quarterly revenue shrank 10.7% to RM1.14 billion from RM1.28 billion previously, due to the lower KVMRT-SSP line contribution and a lower progress from its Langat sewerage project. The drop was however moderated by the consolidation of Penang Port Sdn Bhd’s revenue and a higher volume handled at Port of Tanjung Pelepas, said MMC in its Bursa Malaysia filing yesterday.

During the quarter under review, its ports and logistics segment reported a 55% increase in profit due to higher contributions from Johor Port Bhd and Northport Malaysia Bhd, as well as the full consolidation of Penang Port’s results.

Its engineering segment’s profit, however, decreased 34% due to lower contribution from the KVMRT-SSP line underground works. The profit for its energy and utilities segment fell 17% on higher operation and maintenance costs at Malakoff Corp Bhd.

The group anticipates its ports and logistics division will see positive volume growth across all ports, while its energy and utilities division will “contribute positively from the group’s associated companies” — Malakoff and Gas Malaysia Bhd.

“A substantial existing order book provides earnings visibility for the engineering division, anchored by the KVMRT-SSP line underground and elevated works.

“Further, earnings contribution from the engineering division will be sustained by ongoing projects, including the Langat 2 water treatment plant and the Langat centralised sewerage treatment project,” the group said.